Nucor Corporation is a producer

of steel sheets and related products based in Charlotte, North Carolina, USA.

The company exports manufactured products globally and import iron ore from

different sources. Nucor just purchased AUD 50,000,000  worth of iron ore

from an Australian mining company payable in 9 months. Nine-months call option

on AUD 50,000,000 at an exercise price of USD0.6/AUD with a premium of 3% , and

a nine-month put option on AUD50,000,000 at an exercise price of USD0.65/AUD at

a premium of 2% are available in the market. The current spot price and

nine-month Forward ratess are USD0.62/AUD and USD0.64/AUD respectively.

Australian borrowing and investment rates are 5% p.a and 3% p.a, respectively.

Nucor’s WACC is 7% p.a.

Provide the required information

of proposed hedging strategies available for Nucor, in the provided tables.

FULL WORKOUT IS REQUIRED!